American Riviera Bank (OTC BB: ARBV.OB) on Thursday announced its second consecutive quarterly profit for the three months ended Dec. 31, and is poised for continued growth in 2009.

The bank continued its trend of positive earnings and strong net interest margin. Net income was $75,000 for the 2008 fourth quarter, up from $38,000 in the third quarter. Net interest margin increased to 4.18 percent for fiscal year 2008, from 4.07 percent for fiscal year 2007.

American Riviera Bank reported annual asset growth of 51 percent in 2008 to reach $111 million at Dec. 31, exceeding $100 million in assets for the first time. Total deposits were $84.7 million at year-end, up from $50.5 million at the same time the previous year. Core checking, savings, money market and small certificates of deposit comprise 73 percent of total deposits and the bank is now serving 2,000 local account holders.

“Our strong service culture and focus on relationship banking has led to a satisfied and growing client base,” said Jeff DeVine, American Riviera Bank president and CEO.

Loans totaled $87.1 million at year-end, a $24.9 million increase from the same period in 2007 and a $7.3 million increase from Sept. 30, 2008. Most important, the bank’s loan portfolio continues to perform well, with no delinquent loans, no nonaccrual loans and no loan charge-offs. As such, the bank recorded a loan loss provision on only $10,000 in the 2008 fourth quarter. Loan loss allowance was 1.22 percent of outstanding loans at year-end, which management considers adequate. American Riviera Bank’s capital position remains strong, with a Tier 1 Leverage ratio of 18 percent at year-end, well above the regulatory guideline of 5 percent for well-capitalized institutions.

“We believe that the safety of our bank, our dedicated employees and our best-of-class technology will continue to set us apart,” DeVine said. “We are set to launch mobile phone banking and enhancements to our online capabilities to make banking even more convenient for our customers.”

Founded in 2006 by more than 400 local shareholders, American Riviera Bank is located at 1033 Anacapa St.

— Michelle Martinich is chief financial officer at American Riviera Bank.